By way of example,witha6pre-paymentfee,iftheborrowerweretorepaytheloanin3months,therewouldbe3additionalmonthsofinterestdue.Thisrequirementisputinplaceso that thelenderreceives at leastamodestyieldforthetime,hassleandapportionmentofitsfundsto yourborrower.Iftheloanisrepaidbytheborroweraftersix months,thennopre-paymentpenaltywillbeissued.

Well besidestheapparent35–40%equitycushion,thelenderwillwanttoseethescopeofworkdescribedwithacostanalysistimeline and worksheet. Thelenderusesthisashelpful informationinreleasingfundsforrehabgoals. Nothingevergoesasintendedwhenperformingarehabilitation; thusthelenderwillneedtoseetheborrowersexpertiseinperforming or managingpropertyrepairs.Thelenderrequireaninspection to be made after each draw is completeandwillreleasefundsindraws for such listed repairs. Thelenderwill evenrequirea credit report and income statementfrom theborrowerto exhibitthat theborrowerhastheabilitytorepaytheloan.Nonetheless,hardmoneylendersfocusmostlyontheassetvalueofthecollateraland neverthecreditscore.

For instance,witha6pre-paymentfee,iftheborrowerweretorepaytheloanin3months,therewouldbe3extramonthsofinterestdue.Thisconditionisputinplaceso that thelenderreceives at leastamodestreturnforthetime,hassleandallocationofitsfundsto yourborrower.Iftheloanisrepaidbytheborroweraftersix months,subsequentlynoprepaymentfeewillbeissued.

Howfastcanahard money loan that is typicalclose?

AtCapitalFundingFinancial,we area directlenderandhave the abilitytocloseloanswithina few dayswhengivena completeloanpackage (creditreport,incomedocumentation,independentappraisal,titlecommitment). Thetypicalbargaintakesaboutone or twoweekstofinanceasan independentappraisalandtitlereportneedtoberunontheproperty.

Whenapplyingisanevaluationrequired?

Yes,hardmoneyloansusuallyrequirebrokerpriceopinion,anappraisal,orcomparativesalesanalysis. We are a Quincy hard money lender whoorders anappraisalthatisindependentonthesubjectproperty.

Besidestheobvious35–40%equitycushion,thelenderwillneedtoseetherangeofworkdescribedwithacostanalysisworksheet and timeline. Thelenderwill usethisashelpful tipsinreleasingcapitalforrehabpurposes. Nothingevergoesasplannedwhenperformingarehabilitation; consequentlythelenderwillwanttofindtheborrowersexpertiseinmanaging or performingpropertyrepairs.Thelenderwillreleasefundsindrawsforsuchrepairsthatarelistedandrequireaninspection to be made after each draw is complete. Thelenderwill alsorequireincome statement and a credit reportfrom theborrowerto exhibittheborrowerhastheabilitytorepaytheloan.Yet,hardmoneylendersfocuschieflyontheassetvalueofthesecurityand notthecreditscore.

If you arelooking forahardmoneyloanforarehab,fix&flip,orinvestmentpurpose,contactustodayat954-320-0242ortollfreeat1–866–695–0092orvisitHard Money Loanformoreinformation.